ST. CLOUD, Minn. — Minnesota may lose its reputation for tax-free shopping if Governor Dayton’s proposal for a sales tax on clothing passes. It is part of Dayton’s plan to boost state tax revenue by $2.1 billion and, according to Dayton, make Minnesota’s tax system fairer.
Dayton’s proposed sales tax would only apply to clothing items worth $100 and up. For Katie Alter, manager of Carrie Johnson Bridal in Waite Park, this means everything in her store.
Alter worries about the challenges a clothing tax will present. ”I think it’s going to put a huge strain on us as a business and us as an economy here in Minnesota.”
Alter says it is typical for people from neighboring states to come to her shop in Minnesota to avoid paying sales tax. She fears a sales tax will cause her to lose business.
16-year-old Mackenzie Bowling, who bought her prom dress at Carrie Johnson Bridal, said prom is “spendy” enough without upping the price even more with taxes.
Dayton’s plan also includes sales taxes on other purchases not previously taxed, including haircuts, car repairs, online purchases, and services from lawyers, accountants, and computer consultants. He also plans to increase taxes on cigarettes by 94 cents.
Dayton hopes to balance the blow of these added sales taxes by lowering the overall state sales tax from the current 6.875 percent to 5.5 percent. This would take Minnesota from the 7th highest sales tax rate to the 27th among the states.
Dayton said, “I’m not out to raise taxes. I’m out to raise enough revenue to do what’s right for Minnesota.” His budget plan includes more funding for education and job-creation programs.
by Natalie Davis
www.utvsnews.com
Dayton’s proposed sales tax would only apply to clothing items worth $100 and up. For Katie Alter, manager of Carrie Johnson Bridal in Waite Park, this means everything in her store.
Alter worries about the challenges a clothing tax will present. ”I think it’s going to put a huge strain on us as a business and us as an economy here in Minnesota.”
Alter says it is typical for people from neighboring states to come to her shop in Minnesota to avoid paying sales tax. She fears a sales tax will cause her to lose business.
16-year-old Mackenzie Bowling, who bought her prom dress at Carrie Johnson Bridal, said prom is “spendy” enough without upping the price even more with taxes.
Dayton’s plan also includes sales taxes on other purchases not previously taxed, including haircuts, car repairs, online purchases, and services from lawyers, accountants, and computer consultants. He also plans to increase taxes on cigarettes by 94 cents.
Dayton hopes to balance the blow of these added sales taxes by lowering the overall state sales tax from the current 6.875 percent to 5.5 percent. This would take Minnesota from the 7th highest sales tax rate to the 27th among the states.
Dayton said, “I’m not out to raise taxes. I’m out to raise enough revenue to do what’s right for Minnesota.” His budget plan includes more funding for education and job-creation programs.
by Natalie Davis
www.utvsnews.com
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